With an adjustable-rate mortgage, you benefit from an initial interest rate that is even lower than the rate on a fixed-rate mortgage. Our 3/1, 5/1 and 7/1 ARMs offer the stability of a lower initial rate that is set for a period of three, five or seven years before adjusting annually.

If you have larger borrowing needs, a jumbo mortgage may be right for you. We offer competitive rates that can be either fixed or adjustable. We also offer interest-only payments for those who qualify and borrowing amounts up to $2 million. We also offer an On-time Purchase Closing Guarantee if you are using a jumbo mortgage to buy a home.

Call one of our home loan advisors at 1-888-514-2300 to see if a jumbo mortgage may be right for you and to discuss possible discounts. Or click Act Now to start your application and a home loan advisor will contact you about your loan options.

Fixed rate loans have interest rates that don't change during the life of the loan. Adjustable rate loans have rates that are linked to an index, LIBOR, and therefore can change over time. Consider factors that could affect your decision, such as the length of time you plan to stay in your home. If you plan to stay in your home for a long period of time a fixed rate may be better for you in case rates go up. If you plan to stay in your home for a shorter period of time an adjustable rate may be better for you since initial interest rates are lower in the first 3, 5 or 7 years (depending on your term) than on a long term fixed rate mortgage.

Interest-only loans allow you flexibility on monthly payments. The minimum loan payment covers the interest portion of the loan only, so your principal only decreases if you pay above and beyond the interest. You have the flexibility to decide how much principal you pay each month, so you can pay little or none if times are tight, or a lot if you have extra that month. The interest-only period on your loan is for the first 10 years, after which you will be required to make interest and principal payments for the remainder of the term. Interest-only loans are only available to those who qualify so contact one of our home loan advisors to see if an interest-only loan is right for you.

Through the pre-approval process, your information is reviewed and a decision is made as to whether you qualify for a loan. Contact us to see what information you need to provide. Once pre-approved, you can look for a new home with confidence, and sellers will feel more comfortable dealing with you.

On a purchase your funds are available on the day you close your loan. On a refinance, funds are normally disbursed on the fourth business day after you sign your loan documents. This is because federal regulations require a 3-day rescission period, during which you have the right to cancel your loan outright.

Interest accrues between the loan closing date and the last day of that calendar month. This amount is added to the closing costs for your loan so that your first monthly payment will not be increased in order to absorb the additional interest that would be due.

Closing costs include items like title insurance fees, attorney fees, pre-paid interest and documentation fees – to name a few. These items are usually different for each customer due to differences in the type of mortgage, the property location and other factors. You will receive a good faith estimate of your closing costs in advance of your closing date for your review.

If you are refinancing, you may be able to roll some closing costs into the loan amount. However, if you have funds available to pay the closing costs up-front, you should consider paying them out of pocket since financing them would result in a larger monthly payment. (If you are purchasing, closing costs may not be included in the first-lien loan amount in most cases. Ask your home loan advisor about your situation.)

Our On-time Purchase Closing Guarantee is our way of letting you know that we take your mortgage personally because we know how important it is to you – especially closing on time. For more details visit our On-time Purchase Closing Guarantee page.

If you have a fully amortizing first lien mortgage, portions of your monthly mortgage payment go toward loan principal and interest. Interest-only first lien mortgage payments include only the interest that is due on the outstanding principal balance. If your first lien mortgage carries mortgage insurance, a portion of your monthly mortgage payment will pay this also, unless the lender has paid your mortgage insurance or you have paid your mortgage insurance upfront. If you have set up an escrow account for your first lien mortgage, a portion of your payment may go toward your property taxes and homeowner’s insurance. No matter the type of mortgage product you have, you can always make additional payments toward principal, which will help you pay off your loan more quickly.

An escrow account is a separate account set up by your mortgage lender that allows them to pay your real estate taxes and/or insurance premiums for you. To determine the monthly escrow contribution, the lender typically performs calculations to ensure that there are sufficient funds to pay your future property tax and insurance bills when they are due, while maintaining any applicable minimum escrow balance. They take your annual real estate taxes and/or insurance premium expenses and divide that amount by 12. This amount is added to your monthly mortgage payment. Your real estate and /or insurance bills are sent directly to the lender to pay on your behalf. An escrow account ensures your bills are paid in full and on time, without you having to save large amounts of money and keep track of due dates.

That depends on factors such as the loan program you choose and the amount of down payment you make. When you apply for a loan, you will be provided information as to whether or not an escrow account will be required in your circumstances. You will also be provided an estimate of the escrow amounts.

Typically, real estate taxes and required insurance premiums, which may include hazard/fire insurance and private mortgage insurance, are paid out of an escrow account. Escrow accounts usually do not cover funds for interim bills, homeowner association fees, non-required insurance, special or added tax assessments, supplemental tax bills, or any type of non-real estate based taxes unless they are included on real estate tax bills.

The lender typically projects your real estate tax and homeowner insurance payment amounts based on the most recent amounts from sources that may include your taxing authority, your insurance company, previous amounts paid by the lender or your previous mortgage company, or information provided to the lender when you closed your loan.

The amount the lender collects each month to be held in your escrow account may change based on increases and decreases to your taxes and/or insurance premiums. A review of your escrow account will be conducted at least once a year and any changes made to your mortgage payment will be reflected in your Escrow Account Disclosure Statement which will be provided to you after each review is conducted.

If you have an existing escrow account with us you can visit our What is PMI?

Private Mortgage Insurance (PMI) protects lenders against losses that can occur when a borrower defaults on a mortgage. PMI is required on conventional first mortgage purchase transactions when the borrower has less than a 20% down payment. Likewise, it is required on conventional first mortgage refinance transactions when the borrower has less than 20% equity in the property being refinanced. The cost of the mortgage insurance is typically added to the monthly mortgage payment.

For first mortgages, Citizens Bank offers low down payment financing. Opportunities are dependent on the loan product, loan purpose, occupancy and credit profile. We will help you determine which loan program best meets your needs. Contact a home loan advisor to discuss your options.

For first mortgages, Citizens does not always require a property address to lock a rate. The borrower, however, must provide the subject property address no later than 30 days after locking the rate. Restrictions may apply. Speak with a Home Loan Advisor for specific details on locking your interest rate.

LTV stands for loan-to-value. It is the total dollar amount of liens on the property divided by its fair market value. If the subject property is a purchase transaction, fair market value will be based on the lower of purchase price or estimated market value as established by the appraisal. LTV is used to determine how much you are eligible to borrow and is one of the factors used in determining your interest rate.

When you first apply for a loan, just take your best guess as to your home's value. If you want to try to be more specific, you can talk to a home loan advisor for other methods of trying to determine this amount. However, we will determine the value during your application process.

When reviewing your application information, an underwriter examines your credit history (FICO score), your property value, and your debt-to-income ratio. These are the main factors which describe you as a mortgage applicant. This perceived level of risk determines your loan decision as well as your interest rate in some cases.

While it is true that if your credit score is high you may receive better rates and have more options available to you, this doesn't mean you can't obtain a mortgage if you've had some slips in the past. Credit is only one factor in the underwriting process, so don't think that this alone will stop you from getting a loan; however, your credit history needs to demonstrate both willingness and ability to repay on time.